RLPC-Punch rallies shareholders for $3.6 bln debt deal

LONDON May 22 Punch Taverns, Britain's
second-largest leased pub group, is trying to win shareholder
support for a restructuring of its 2.3 billion pound ($3.6
billion) debt, banking sources said.

Blackstone and Goldman Sachs are advising on talks which are
proving difficult as many shareholders are hedge funds,
including Alchemy, Avenue Capital Group, Glenview Capital, and
Luxor Capital, banking sources said.

A restructuring requires shareholder consent as it could
dilute their stakes. Many hedge fund shareholders are also
bondholders and are finding it difficult to agree to a
restructuring which would hit the value of their bonds, banking
sources said.

Punch Taverns has embarked on restructuring talks as,
despite forging ahead with the sale of its 2,000
worst-performing pubs, it is unlikely to have raised sufficient
funds by 2015, when high amortisation payments start on its
debt.

The sale of 2,000 pubs will leave Punch Taverns with a core
estate of 3,000 leased pubs.

The company is working to get shareholder approval and
subsequently creditors on board with a consensual restructuring
due to a complex debt structure. Punch operates as one company
but its debt is split between two securitisation structures,
which could lead to lengthy and contentious intercreditor
battles, bankers said.

Discussions with shareholders are likely to last until mid
August, when it hopes sales will have increased during a busy
Olympics summer. If shareholders agree to a restructuring, the
company will enter talks with lenders in the second half of the
year, bankers added.

Punch demerged its better performing managed pubs division
Spirit Pub last year to cut billions of pounds of debt. Its
pretax profit in the 28 weeks to March 3 fell to 33 million
pounds from 41 million pounds a year ago.

Dec 8 Fixed annuity service provider Athene
Holding Ltd said its initial public offering of 27
million class A shares raised $1.1 billion after the offering
was priced in the mid-point of its expected range, valuing the
company at about $7.55 billion.

KINSHASA, Dec 9 The appointment of a temporary
administrator to run the Tenke copper mine has been blocked by
an appeals body, the mine said on Friday, removing a hurdle to a
takeover by China Molybdenum.

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